Do you have business insurance? Whether your small business just opened, or your company has run for over a decade, it’s important to check your policy. After all, when you work with clients, you need to make sure your business insurance policy is as updated as possible. If you’re not sure how a certificate of insurance affects your business, then it’s time to learn more about it.
What Is It?
A certificate of insurance is called a COI for short. It is a document prepared by your insurance provider on behalf of your business. It means that your business insurance is valid. Once you have it in hand, you can show it to clients who want to see your dates of coverage, how high your coverage limit is, and what losses are covered by your policy. That said, there’s still an important distinction to make: The certificate of insurance is not an insurance policy. Thus, it can’t grant coverage – it just means that you have coverage on the day that the certificate was drawn up and issued.
How Does It Help?
Although you may think it is unnecessary, having this certificate can benefit your business. When you present a prospective client with this document, then they’ll be more comfortable working with you. In other words, when you have a COI, it can help find new clients and generate new leads, gaining customers before your competitors can.
Is It Different from Additional Insured?
Now that you know more about business insurance and how certificates of insurance fit in, you might still have questions. For instance, you might be wondering how this certificate is any different from the “additional insured” mentioned in your policy. Using the “additional insured” provision names another person or business that you can cover with your existing policy. This is useful when you need to extend liability coverage. However, it is also important to understand that this coverage might not be the same. Different policies have different conditions and requirements resulting in different types of coverage. In short, every policy is different, just like how business is different.
Get in Touch with Wachter Insurance
Whether you need business insurance, homeowners’ insurance or auto insurance, our team at Wachter Insurance Agency, Inc. is here to help. We give our clients competitive rates, professional customer service, and a vast range of policies to choose from for your needs. We have been serving Maryland, West Virginia, Virginia, Pennsylvania, and the District of Columbia since 1969 and we would love to help keep your home and family safe every day of the year. For more information, give us a call at (301) 371-6335 or visit us online. For more blogs like these, follow us on Facebook, Google+, Twitter, and Pinterest.